Coupon payment at the end of the third year

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Reference no: EM131460636

A TIPS bond with a $1,000 par value was issued three years ago with a coupon rate of 8%. In the first year inflation was 4.5%, in the second year 5% and in the third year 5.5%. The coupon payment at the end of the third year would be ______.

a)$80.00

b) $92.72

c) $92.52

d) $92.61

Reference no: EM131460636

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